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Initially, the program is placed in a really odd and non-helpful governmental location for the excitement of worldwide financial investment in the United States. Second, its range is all incorrect. We are handing out excessive for too little of an investment. Additionally, raising venture capital half a million dollars a tranche is, to claim the least, ineffective.


The local facilities, with their half-million plans, essentially damaged the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, need to be regarding producing business entities, not easy investments. It must have to do with creating real jobs, not clarify estimations concerning the indirect development of tasks, which is currently part of the regulation.


Possibly that is among the reasons that it has actually stopped working year after year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too full of middlemen, both public and private. The program has more than its share of rumors, which I will get right into later on if anyone is interested.


This is an agency that loves to state yes to candidates, but as the table in my statement shows, USCIS police officers have far more trouble with EB-5 applications than others. I assume that is something that no one has truly discussed much. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently reason

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Seventh, in this program visas go to individuals that might not obtain them any kind of various other means and to individuals whose scheduled investment is actually much less, according to the Federal Get, than the ordinary mean net worth of all American households in 2007. Allow me increase on among my monitorings.


My price quote based upon the financiers' environment-friendly card applications filed 2 years after the first financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not offer the sort of data that we can use on this.


So for every single $100 of increased foreign investment that year, the EB program contributed one cent. Under a much a lot more shaky analytical base, the preliminary applications of prospective immigrant investors, USCIS is telling reporters that the level here of investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thank you for listening to me. I look forward to your remarks and inquiries. [The prepared declaration of David North looks like an entry for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration technique group.




Divine worked as Chief Guidance of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Supervisor. He has actually functioned thoroughly with the EB-5 program secretive practice. He was chosen, as I comprehend, vice head of state of the Association to Invest in USA, the nationwide market organization of regional.


Divine, we are delighted to have you below. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 ports were used, it would be 1 percent of the migration yearly to the USA. It is not near that yet, but it is expanding and obtaining towards that. Especially as USCIS, the firm that supervises the program, has actually been making the rules more clear and the procedures a lot more rational and clear for individuals who are arranging financial investments and for the capitalists that are spending, even more people have agreed and able to put effort and cash into the process to locate good tasks and establish them, and after that a lot more investors have agreed to invest their cash and take the threat and use the cash to create the tasks that is the factor of the program.

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These projects do not linger permanently, and USCIS comprehends that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was pointed out


The local facility component of the program is not. It becomes part of an appropriations costs that was established in 1992, and given that then that program has actually been extended five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a great while to work up a job and then to get the capitalists authorized. And they do not desire their money moving through up until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the development of jobs.

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I would like to make clear that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 legislation that becomes part of the code. It simply is a truth that many of the regional centers that are pooling investments have actually set those in areas of high unemployment or in backwoods where half- million-dollar financial investments are allowed, which makes good sense.